Internal Auditor not to undertake Goods and Service Tax

We have received enquiries from the members at large and other 

stakeholders as to whether an internal auditor of an entity can also 

undertake GST Audit of the same entity as required under the Central 

Goods and Service Act, 2017.

The Council of the Institute, while considering the issue at its 

378th Meeting held on 26th and 27th September, 2018, noted its earlier 

decision taken at its 281st Meeting held from 3

rd to 5th October, 2008, 

that internal auditor of an assesee, whether working with the organization 

or independently practising Chartered Accountant being an individual 

chartered accountant or a firm of chartered accountants, cannot be 

appointed as his Tax auditor (under the Income Tax Act, 1961).

Upon consideration, the Council has decided that based on the conflict in 

roles as statutory and internal auditor simultaneously, the bar on internal 

auditor of an entity to accept tax audit (under Income Tax Act, 1961) will 

also be applicable to GST Audit (under the Central Goods and Service 

Act, 2017).

Accordingly, it is clarified that an Internal Auditor of an entity cannot 

undertake GST Audit of the same entity.

28.9.2018